BNP AM

The sustainable investor for a changing world

Asset-backed securities strategy

Key features

A portfolio of high-quality asset-backed securities, which can offer higher yields than traditional fixed income  

An investment process that emphasises credit quality, capital preservation and ESG considerations

A highly experienced team with a track record since 2008

Investment philosophy 

Our investment philosophy relies on a disciplined investment approach derived from a strong risk-management culture. Above all, we focus on achieving target returns with the lowest credit risk possible, and prioritise the quality of the portfolio over yield.

Furthermore, our investment philosophy centres upon credit and cash flow dynamics, as a true understanding of these factors is necessary to achieve success when investing in the structured finance market.

Investment process

Our Asset-backed Securities strategy follows a disciplined four-step process:

  • Top-down analysis: review allocations across countries, sectors and tranches-seniority levels
  • Bottom-up security selection based on the underlying credit quality, structural features, legal documentation and background of deals
  • Portfolio construction
  • Proactive monitoring

Team and resources

Our Structured Finance team is based in Paris. Michel Fryszman, who has more than 30 years of industry experience, leads the team.

The team is characterised by a wealth of experience and deep understanding of the market, and benefits from access to our wider Private Debt and Real Assets (PDRA) investment group, global trading and risk management platform, Sustainability Centre, Quantitative Research Group, Macro Research team and BNP Paribas Group’s financing franchise.